Which One of the Following Is a Credit in the U.S

question 89

Multiple Choice

Which one of the following is a credit in the U.S. current account?

• A) the purchase of a U.S. car by a German
• B) the purchase of insurance from Lloyd's of London by an American
• C) a trip to Mexico by an American student
• D) the purchase of Japanese bonds by an American investor

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Definitions:

Marginal Product

The additional output that is produced by adding one more unit of a specific input, ceteris paribus (with all other inputs held constant).

Bushels

A unit of volume that is used to measure agricultural commodities like grains and fruits.

Total Product Curve

A graphical representation of the production function, showing how the quantity of output depends on the quantity of the variable input for a given quantity of the fixed input.

Fixed Input

An input whose quantity is fixed for a period of time and cannot be varied (for example, land).